March prices of European PVC rose for CIS markets

MOSCOW (MRC) -- Negotiations on prices of European polyvinyl chloride (PVC) for March shipments to the CIS markets have begun this week. European producers increased their export prices on rise in ethylene prices in the region, according to ICIS-MRC Price report.

The March contract price of ethylene was agreed up by EUR30/tonne from February, which presupposes the decrease in PVC production costs by, at least, EUR15/tonne. Taking it into account European suppliers increased export prices of suspension PVC (SPVC) for March shipments to the markets of the CIS countries, prices are suggested to be risen by EUR10-20/tonne in comparison with February.

Demand for PVC from the main consumers in the CIS countries remained at a low level this month due to the seasonal factor. At the same time, some companies intend to slightly decrease the volume of purchases, since they have sufficient stocks of PVC from February purchases.

Some producers have restrictions on shipments in the current month, but given the low demand, such restrictions were not critical.

Deals for March shipments of suspension polyvinyl chloride (SPVC) to the CIS markets were discussed in the range of EUR710-765/tonne FCA, whereas last month's deals were done in the range of EUR690-755/tonne FCA.
MRC

DuPont to expand polyimide film, circuit materials production in US

MOSCOW (MRC) -- DuPont Electronics & Imaging announced today that it is investing USD220 million to build new production assets at its Circleville, Ohio, plant, said the company.

The new assets will expand production of DuPont Kapton® polyimide film and Pyralux® flexible circuit materials to meet growing market demand in automotive, consumer electronics, telecom and defense. DuPont anticipates that the new assets will be operational by 2021.

"This investment is a reflection of our strong commitment to our customers around the world," said Jim Fahey, President of DuPont Electronics & Imaging. "Our new production assets will position us well to support the growing need across many sectors for our advanced high-reliability materials for innovations in areas such as 5G, automotive, flexible displays and artificial intelligence."

With world-class manufacturing and R&D capabilities, DuPont's Circleville plant is the natural location to expand. This facility has manufactured polyimide film for various electronics and industrial applications for more than 60 years.

The company is also making concurrent infrastructure and personnel investments at the DuPont Hsinchu, Taiwan, site to support growing customer needs. DuPont previously announced plans to increase Kapton® production by up to 20 percent by the end of the first quarter of 2019. Having successfully done that, the new assets will add significantly more production over the next several years.

Kapton polyimide films, made only by DuPont, have helped set industry standards for over 50 years in high performance, reliability and durability. Kapton® polyimide films offer an industry-leading durability and reliability for extreme applications with excellent mechanical, thermal and electrical properties.
MRC

Not all Russian producers reduced March DOP prices

MOSCOW (MRC) -- One of two Russian producers of dioctyl phthalate (DOP) plasticizer has announced a price reduction for March shipments. Russian dioctyl terephthalate (DOTP) plasticizer is also expected to appear in the market in March, reported MRC analysts.

Fairly high prices of DOP plasticizers remained in the Russian plasticizers market in the first two months of the year, prices were in the range of Rb107,000-110,000/tonne, including VAT and delivery. One of the two producers announced the price reduction of Rb103,000/tonne for March shipments, including VAT and delivery. Market participants said the second manufacturers rolled over February prices due to limited stocks.

Thus, offer prices for March deliveries of Russian DOP plasticizer are in the range of Rb103 000-108 000/tonne, including VAT and delivery.

There were also offer prices for shipments of Russian DOTP plasticizer in the second half of March. SIBUR launched its own production at the site in Perm in March. Market participants said March offer prices were heard at an average of Rb98,000/tonne FCA Perm, including VAT.
MRC

Trinseo raises March prices of ABS and SAN in Europe

MOSCOW (MRC) -- Trinseo, a global materials company and manufacturer of plastics, latex binders and synthetic rubber, and its affiliate companies in Europe have announced a price increase for all acrylonitrile-butadiene-styrene (ABS) and acrylonitrile-styrene copolymer (SAN) grades, said the producer in its press release as of 6 March.

Effective March 1, 2019, or as existing contract terms allow, the contract and spot prices for the products listed below rose as follows:

- MAGNUM ABS resins - by EUR70 per metric ton;
- TYRIL SAN resins - by EUR70 per metric ton.

As MRC informed before, Trinseo last increased its prices for all polystyrene (PS), ABS and SAN grades on February 1, 2019. Thus, February prices for the said products grew, as stated below:

- STYRON general purpose polystyrene grades (GPPS) - by EUR45 per metric ton;
- STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR45 per metric ton;
- MAGNUM ABS resins - by EUR30 per metric ton;
- TYRIL SAN resins - by EUR35 per metric ton.

Trinseo is a global materials company and manufacturer of plastics, latex and rubber. Trinseo's technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Formerly known as Styron, Trinseo completed its renaming process in 1Q 2015. Trinseo had approximately USD4.4 billion in net sales in 2017, with 16 manufacturing sites around the world, and approximately 2,200 employees.
MRC

US crude inventories rise more than expected in week

MOSCOW (MRC) -- US crude oil stockpiles rose much more than expected last week, while gasoline and distillate inventories fell more than forecast, drawing down for the third consecutive week as refining rates remained low, reported Reuters with reference to the Energy Information Administration.

Crude inventories rose 7.1 million barrels in the week to March 1, far exceeding analysts' expectations for an increase of 1.2 million barrels.

Stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose for the third consecutive week, increasing 873,000 barrels to 47.5 million barrels, the highest since December 2017, the EIA said.

US crude futures extended losses after the data release, falling to a session low of USD55.42 a barrel. The contract traded at USD55.85, down 70 cents in the session, by 10:54 a.m. EDT (1554 GMT).

US gasoline futures turned positive after the report, trading up 1.03 cents a gallon at USD1.7777.

Refinery crude runs rose by 100,000 barrels per day, the data showed. Refinery utilization rates rose by 0.4 percentage point to 87.5 percent of total capacity.

"The drop in refined fuel inventories is a result of the low refinery run rates," said John Kilduff, a partner at Again Capital LLC in New York. "Gasoline demand is picking back up, which is a supportive feature of the report," he said.

Gasoline stocks fell by 4.2 million barrels, compared with analysts' expectations in a Reuters poll for a 2.1 million-barrel drop.

"Three straight weeks of declines in gasoline inventories are starting to have an effect," said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington. "While gasoline stocks are in no way tight, the supply glut is starting to recede."

Distillate stockpiles, which include diesel and heating oil, fell by 2.4 million barrels, versus expectations for a 1.4 million-barrel drop, the EIA data showed.

Net US crude imports rose by 1.6 million bpd and production held at last week's record highs at 12.1 million bpd.
MRC